Ironically for the great-grandparent post, both the grandparent and parent post are "both completely true" as well.
We quite correctly should expect governments to (have) ensured that these corporations could be allowed to collapse, indeed they (bravely) did with Lehman, just AIG was worse.
We also should expect that if you give someone 10-40 years salary each year, then that bonus really really should be well aligned with the stockholders own goals, or they will act in their own best interest (correctly).
The only thing that turned a disaster into a once in a century clusterfk was being unable to let them collapse.
We quite correctly should expect governments to (have) ensured that these corporations could be allowed to collapse, indeed they (bravely) did with Lehman, just AIG was worse.
We also should expect that if you give someone 10-40 years salary each year, then that bonus really really should be well aligned with the stockholders own goals, or they will act in their own best interest (correctly).
The only thing that turned a disaster into a once in a century clusterfk was being unable to let them collapse.
So thats surely the public policy takeaway here.